Fixed Annuities are interest based products designed for retirement savings. They are somewhat similar to CDs, but unlike CDs, they are issued by insurance companies, not banks. Fixed Annuities typically ask for a lump sum initial deposit that locks in an interest rate ranging from 3% to 10% for a term of 3 to 15 years.
Many of the scary stories you've heard about annuities are just not true. Here are some of the most common concerns about annuities, and the answers that may surprise you.
- Will an annuity tie up my money?
- Are annuities safe like bank accounts?
- Can I transfer my annuity to my heirs?
- Are annuities difficult to understand?
- Why doesn't my financial advisor doesn’t talk about annuities?
One of the most common questions we get from our readers is what questions should they ask when they meet with an annuity adviser, and what kind of questions will the adviser ask them? We’ve polled some of the advisers in our referral network to get their thoughts on what a typical first client meeting is like.
Where should I meet my annuity sales adviser? Some clients like to meet in the comfort of their own home where they have easy access to their financial records.